Diamond Buys P&G's Pringles

By

Ellen Byron And

Paul Ziobro

Updated April 6, 2011 12:01 a.m. ET

Procter & Gamble Co. agreed to sell its Pringles line of snacks to Diamond Foods Inc. for $1.5 billion, under a deal designed to minimize the tax bite while fully cleaning its cupboards of food brands.

The transaction, in which P&G shareholders will get Diamond Foods stock and Diamond will assume $850 million of Pringles debt, marks P&G's exit from the food business. The process began under former Chief Executive A.G....